INSURANCE CARRIER DISCOUNTS FOR “GREEN” LANDLORDS ARE ROLLING OUT While there has not yet been a wide roll-out of incentives by the entire industry (the wheels of change in insurance can turn quite slowly), many insurance carriers have already started providing discounts for: 1. Utilizing sustainable or “green” building features (such as solar panels, wind, or other geothermal electrical sources) 2. Having your property LEED (Leadership in Energy and Environmental Design) certified 8 3. Properties in wildfire-prone areas that participate in the Firewise Program 4. Properties in flood-prone areas that install flood openings or elevate the property 5. Using hybrid and electric vehicles
WHAT CAN YOU EXPECT TO SEE CHANGE IN YOUR INSURANCE POLICIES?
1. Separate deductibles for wind and hail damage 2. Actual Cash Value on roofs older than 15-20 years 3. Higher property deductibles in general 4. More scrutiny on building system conditions 5. In high-risk areas, reduced carrier choice and seasonal closures to all new insurance policies
Lastly, you should work with an agency that knows your business and the inherent risks that come with being a landlord. Be sure they are also staying up to date with the environmental threats common to your area(s). The most important thing to remember is that no matter what the cause, catastrophic weather
Lauren has been with InsuranceHub for over 7 years and specializes in advising clients all around the country in regard to their multifamily and other lessor’s risks properties. When she is not helping her clients, you can find her fostering dogs for animal rescues (and only occasionally keeping them). She originally hails from Ohio, but now lives in Decatur, Georgia with her husband and menagerie of pets. doing what is feasible for you to protect your investment for the worst-case scenarios. Doing so will set you up for success for when the next disaster comes. events are not going away any time soon, and the consensus by the insurance industry is that these types of climate-caused disasters will be getting worse before they get better. Make sure you are
LAUREN LIEB Sr. Commercial Risk Advisor InsuranceHub (678) 812-2516 LLieb@insurancehub.com
FOOTNOTES
1.
https://www.iii.org/fact-statistic/facts-statistics-wildfires
2. https://www.propertycasualty360.com/2021/02/19/texas-ice-storm-likely-to-be-even-costlier-than-hurricane-harvey/ 3. https://floodlist.com/america/usa/tennessee-floods-update-august-2021gg 4. Carolyn Kousky, Howard Kunreuther, Michael LaCour-Little & Susan Wachter (2020) Flood Risk and the U.S. Housing Market, Journal of Housing Research, 29:sup1, S3-S24, DOI: 10.1080/10527001.2020.18369151 5. https://riskandinsurance.com/cost-of-climate-change/ 6. https://www.fema.gov/sites/default/files/2020-11/fema_protect-your-property_severe-wind.pdf 7. https://www.propertycasualty360.com/2015/07/29/6-ways-to-tornado-proof-your-home/ 8. https://www.naic.org/documents/cipr_potential_impact_climate_change.pdf
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